Tesla reported an impairment loss of $101 million from its Bitcoin investments. While these were announced in the company's statement to the US Securities and Exchange Commission (SEC), the following statements were also included:
“In the year ended December 31, 2021, we recorded approximately $101 million in impairment losses resulting from changes in the book value of our Bitcoin and gains of 128 million from certain Bitcoin sales by us.”
Tesla invested $1.5 billion in Bitcoin in the first quarter of 2021. They also earned $128 million by selling some of their assets in March 2021, according to the documents.
The company wrote that as of December 31, the book value of Tesla's digital assets was $1.26 billion, while the fair market value of such digital assets as of December 31, 2021 was $1.99 billion.
Meanwhile, as reported, US software company MicroStrategy reported its fourth-quarter loss after taking a $146.6 million impairment to note the value of its BTC holdings. The company's net loss was $90 million, or $8.43 per share.
As for Tesla, they added that they expect operating expenses to increase in 2022 as they expand their operations globally.
“We expect operating expenses to decrease as we continue to increase overall operational efficiency and process automation as we see sales increase and exclude the potential impact of macroeconomic conditions, including increased labor costs and impairment of certain assets.”
The filing also clarified that on November 16 last year, the SEC sent a subpoena to the company "requesting information on its management processes regarding compliance with the SEC agreement," reached in September 2018. This subpoena relates to a dispute that began with Musk's tweets and the SEC's claim that Musk was engaging in securities fraud by saying he was funding the company's privatization. Under the deal, the company had to oversee Musk's talks.
Just days before the November subpoena was sent, Musk had caused a drop in the price of the stock by asking his followers if he should send 10% of Tesla shares. This may have triggered the subpoena, but the notice does not include details about it.